Oil markets experienced relative stability in recent trading sessions, with prices remaining near two-month lows, influenced by geopolitical developments surrounding negotiations between Russia and Ukraine. At the same time, a decline in U.S. crude stockpiles provided some support to prices. Brent crude rose by 0.2% to $73.18 per barrel, while U.S. West Texas Intermediate (WTI) crude posted slight gains of 0.3%, reaching $69.13 per barrel.
Markets are closely monitoring the Russia-Ukraine peace talks, with rising expectations of a potential agreement that could lead to the easing of sanctions on Russia. Such a scenario may increase global oil supplies, adding downward pressure on prices. Investors are also watching the U.S.-Ukraine minerals agreement, which could have broader economic implications, particularly if it affects trade policies or global financial flows.
Preliminary data from the American Petroleum Institute (API) showed that U.S. crude oil inventories fell by 640,000 barrels last week, indicating a modest improvement in demand levels. However, previous estimates had predicted an increase of 2.6 million barrels, creating uncertainty about the actual balance between supply and demand.
Concerns about a global economic slowdown continue to weigh on markets. U.S. consumer confidence dropped sharply in February, marking the steepest decline in three and a half years, raising fears of reduced private consumption. Additionally, Germany’s economy contracted in Q4 2024, raising concerns about weaker energy demand in Europe. With persistent strict trade policies, such as new tariffs on copper and steel imposed by the Trump administration, oil demand may remain limited in the near term, despite ongoing supply-side challenges.
